South African bonds were firmer at midday on Thursday ahead of the Reserve Bank’s interest rate decision later in the afternoon. No change is expected. Lower producer price inflation (PPI) reported just before midday supported the prospect of lower interest rates later in the year. PPI moderated to 5.6% year on year in February. Subdued money supply data released in the morning, together with the stronger rand, were also conducive for a lower interest rate scenario in the second half of the year. At a South African Communist Party (SACP) media briefing it was confirmed that President Jacob Zuma intended to fire Finance Minister Pravin Gordhan and his deputy, Mcebisi Jonas, despite strong opposition to such a decision from alliance members. The briefing also confirmed that the reason Gordhan and Jonas were recalled from an overseas investor roadshow was based on a dubious intelligence report, a copy of which was provided to the SACP leadership. The SACP also sharply criticised the ap...
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